Texas

Legislative activities

“In June 2007, Governor Perry signed legislation that set an Efficiency Portfolio Standard (EPS) and encourages utilities to deploy demand response (HB 3693). The EPS applies to residential and commercial customers and directs utilities to reduce their customers’ consumption.” [1]

Regulatory activities

Texas was one early with deregulation of their electric power markets, for that reason there are multiple options for customers wishing to take third party electric service. The Public Utility Commission of Texas regulates the rates the utilities charge not third party electric service so more options are available to customers who take part in third party electric service through a retail electric provider (REP). The Commission however has dealt with Time of Day rates for business as early1979 and residential rates by 2001. Demand-side management was established as early as 1979, with the Independent System Operator, ERCOT, later establishing load reduction programs separate from the utilities. With lots of industry in Texas distributed generation has always been around. Most distributed generation in Texas chooses to participate within the ERCOT power markets, but by 1998 some utilities did have rate schedules for qualifying facilities. [2, 3, 4, 5]

“In September 2008, the Commission filed with the Texas Legislature, in compliance with a law enacted in 2005, its second report on AMI—“Report to the 81st Texas Legislature: A Report on Advanced Electric Metering as Required by House Bill 2129”. The Commission concluded in its report that deploying AMI is a “critical component of the evolving Texas electric market,” not least of which because it enables demand response.” [1]

Time of Day, or Time-of-Use rate break the cost for electricity into periods on a seasonal basis with either critical peak, on-peak, or off-peak pricing.

Demand-side management includes interruptible accounts, where with notification the company can de-energize the customers electric equipment as contracted.

Distributed generation includes generation qualifying facilities and are paid based on published on-peak and off-peak yearly Avoided Energy Cost Estimates, or as contracted with the company.